Upside Purchased on American Capital Agency Corp. (AGNC)

Shares of American Capital Agency Corp. AGNC are higher on the session by 0.35%, currently trading at $28.56. The stock has been rallying over the past two weeks; the stock appears to be gaining momentum to the upside. Options traders are betting that the rally continues as well. Though trades have been primarily in small lots, call volume is now running at 3x the daily average. Traders are focusing in on the $25 and $30 strikes in multiple months. American Capital Agency Corp. is a real estate investment trust. AGNC earns income primarily from investing in residential mortgage pass-through securities and collateralized mortgage obligations. These investments consist of securities, for which the principal and interest payments are guaranteed by United States Government-sponsored entities, such as the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation or by a United States Government agency, such as the Government National Mortgage Association.